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SAP Stock Skyrockets on Cloud Boom – Analysts Eye New Highs?
30 October 2025
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2 mins read

SAP Stock Soars on Cloud Surge — Can the Rally Continue?

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  • Price & Performance: SAP (NYSE: SAP) shares were trading around $262 on Oct. 30, 2025 [1]. The stock is roughly flat on the year (up ~0.2% YTD) after surging about 75% over the past 12 months [2].
  • Q3 Earnings: In Q3 2025 SAP delivered 7% revenue growth (€9.08 billion) and 12% operating profit growth, driven by 22% year-over-year growth in cloud sales [3] [4]. Cloud backlog hit a record €18.84 billion (up ~27% in constant currency) [5]. CEO Christian Klein hailed “strong cloud revenue growth” and said SAP is “confident in our accelerating total revenue growth ambition for 2026” [6].
  • Guidance & Outlook: SAP raised its full-year 2025 profit and cash-flow outlook, but cautioned that cloud revenue will land near the low end of its €21.6–€21.9 billion target [7] [8]. CFO Dominik Asam emphasized “disciplined execution and a sharp focus on profitability and cash flow” as the company “maintained forward momentum despite an uncertain macro backdrop” [9] [10].
  • Analyst Views: Wall Street remains mostly bullish. About 15 analysts rate SAP a “buy,” with an average 12-month target around $281 (roughly €265) [11]. Top brokers’ price targets range from ~€270 to €316 [12]. However, most targets imply only modest upside – shares are near multi-year highs and have doubled in a year [13] [14].
  • Stock Reaction: SAP’s share price swung wildly in late Oct. 2025. After SAP beat earnings estimates on Oct. 22, the stock initially fell ~4% in after-hours trading (as investors digested the cautious cloud outlook) [15] [16]. By Oct. 23, it rebounded ~2% in Frankfurt as analysts noted the results were “better than feared” [17]. Over the week of earnings, SAP closed between about $259–$279, with a sharp drop on Oct. 29 followed by a pickup on Oct. 30 [18].
Date (2025)Close Price (USD)Daily Change
Oct 22$276.22–1.5%
Oct 23$278.53+0.8%
Oct 24$269.55–3.2%
Oct 27$272.16+0.9%
Oct 28$270.06–0.8%
Oct 29$259.64–3.8%
Oct 30$262.25+1.0% (intraday)

Source: Stockanalysis.com (SAP/USD data) [19].

  • Strategic Moves (AI/Cloud): SAP is expanding its cloud and AI offerings. In late Q3, SAP acquired SmartRecruiters (a talent-acquisition software firm) and launched an “OpenAI for Germany” sovereign-cloud service in partnership with OpenAI [20]. It also announced partnerships with ADP (cloud payroll) and Amazon/AWS (sovereign cloud on AWS), and expanded Google Cloud ties. These initiatives aim to drive long-term growth by integrating enterprise software with AI and cloud platforms [21] [22].
  • Analyst Commentary: Many analysts highlighted SAP’s strong backlog and disciplined execution. Goldman Sachs reiterated a Buy rating, noting “durable backlog and cloud revenue growth” and healthy migration of customers to SAP’s new cloud products [23]. JPMorgan pointed out that the 27% cloud backlog jump is especially positive given concerns about AI displacing software demand [24]. Still, some brokers have trimmed targets (e.g. DB to €270, BofA to €316) in light of a tech sector “derating” and sky-high valuations [25].
  • Market & Economic Context: The SAP news came in a choppy market environment. On Oct. 29 the U.S. Federal Reserve cut rates slightly, but Chairman Powell warned further cuts are uncertain [26]. U.S. stock indexes were flat-to-down on Oct. 30 as investors digested this outlook. In Europe, Germany’s DAX index was near record highs (~24,700) going into SAP’s report [27]. SAP’s 17%-weight in the DAX means its volatility can sway the whole index – indeed, SAP’s initial miss helped drag the DAX lower, and its rebound later lifted the market [28]. Meanwhile, broader tech jitters (Tesla’s profit miss, Netflix slump, chip weakness) have put pressure on tech-linked stocks, even as SAP tries to capitalize on the AI/cloud boom [29] [30].

Bottom Line: SAP remains a market heavyweight riding a powerful transition to cloud and AI. Its Q3 results showed solid gains, but management warned of a near-term slowdown in cloud growth. Analysts say the long-term story is positive – backlog is large and costs are in check – but with the stock near cycle highs, “the rally” may need new catalysts to keep climbing. Investors will be watching upcoming earnings and how well SAP turns its AI/cloud investments into sales.

Sources: Official SAP earnings release and outlook [31] [32]; Reuters and TS2.tech news reports [33] [34] [35] [36] [37] [38]; expert analysis and forecasts [39] [40] [41]. (Table data from Stockanalysis [42].)

SAP Stock Drops Despite Strong Cloud Growth | Q3 2025 Earnings Explained
Watch this video on YouTube.

References

1. stockanalysis.com, 2. www.reuters.com, 3. www.sap.com, 4. ts2.tech, 5. www.sap.com, 6. ts2.tech, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. ts2.tech, 11. ts2.tech, 12. ts2.tech, 13. ts2.tech, 14. www.reuters.com, 15. ts2.tech, 16. ts2.tech, 17. ts2.tech, 18. stockanalysis.com, 19. stockanalysis.com, 20. www.sap.com, 21. www.sap.com, 22. ts2.tech, 23. ts2.tech, 24. www.reuters.com, 25. ts2.tech, 26. www.reuters.com, 27. ts2.tech, 28. ts2.tech, 29. ts2.tech, 30. ts2.tech, 31. www.sap.com, 32. www.sap.com, 33. www.reuters.com, 34. www.reuters.com, 35. ts2.tech, 36. ts2.tech, 37. ts2.tech, 38. stockanalysis.com, 39. ts2.tech, 40. ts2.tech, 41. www.reuters.com, 42. stockanalysis.com

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Marcin Frąckiewicz Latest posts

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Stock Market Today

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    October 30, 2025, 6:02 PM EDT. Nasdaq 100 futures (US100:IND) slipped -0.3% after hours on Thursday, even as post-earnings gains lit up Apple and Amazon. Sentiment remained muted from the regular session, keeping upside limited despite the tech rally.
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    October 30, 2025, 5:49 PM EDT. December Nymex natural gas settled higher (+0.025, +0.84%), extending Monday's gains to a 5-month nearest-futures high as forecasts point to colder US weather later this month, boosting heating demand. Forecaster Maxar shifted cooler for Nov 28-Dec 2. Lower-48 gas production slipped to 101.1 bcf/d, while demand rose to 77.6 bcf/d. LNG net flows to US terminals were 13.4 bcf/d. Despite last week's EIA build of 42 bcf, inventories were up ~3.7% y/y and ~6.1% above the 5-year average. European storage sat around 93% full. The Baker Hughes rig count stood at 101 active rigs, near multi-year lows, signaling tighter supply dynamics into winter.
  • Crude Prices Edge Up on Demand Optimism Amid US-China Truce and Global Growth Signals
    October 30, 2025, 5:46 PM EDT. Crude oil and gasoline edged higher as traders priced in renewed demand optimism after a US-China tariff truce, with WTI and RBOB posting small gains. A weaker weekly EIA inventory draw and hopeful global growth supported the complex, though a firmer dollar limited gains. Eurozone Q3 growth surprised to the upside and the BOJ lifted its 2025 GDP forecast, boosting sentiment for energy demand. Sanctions on Russian energy, plus dwindling export capacity and Ukrainian strikes, keep supply concerns firm. Tanker stockpiles rose per Vortexa, while the IEA warned of a 2026 surplus; meanwhile OPEC+ eyes a modest December output hike to reverse earlier cuts. Overall, the demand outlook remains a key driver for crude and gasoline prices.
  • Is Apple's 2025 Stock Rally Justified by AI Advances? A Valuation Check
    October 30, 2025, 5:44 PM EDT. Apple's stock has climbed 3.9% over the past week, 5.9% in the last month, and nearly 20% over the past year, as AI advancements and new product launches keep investors optimistic. Yet regulatory scrutiny injects fresh risk. On valuation, the stock shows a mixed picture: a status of just 1/6 on being undervalued. The DCF approach yields an intrinsic value around $219.59 per share, implying the stock is about 22.8% overvalued vs. current prices. The piece also compares PE multiples as a quick check, noting that fair value depends on growth and risk assumptions. In short, the rally may be supported by AI momentum but valuation signals remain mixed, suggesting investors should weigh fundamentals against risks before trading.
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